To Shareholders and Investors

Business Report for the 83rd Term
From April 1, 2015 to March 31, 2016
Securities Identification Code: 6455

BT o p Me ssag eusiness

ReportGreeting

Shosaku Morita, who Morita Holdings is named after, founded
our company in 1907 and made the first gasoline-powered firepump in Japan.
Ever since then, Morita Holdings has been developing
firefighting technology in Japan, working as a leading
manufacturer of fire trucks for over a century. We owe oursuccess to our customers who have continued to support usto this very day, for which we are deeply grateful.
In addition to our dedication to the protection of human lifeand property from fire, we have embarked in environmentrelated businesses including environmental conservation
vehicles, waste rec ycling plants and waste disposal

equipment, working hard to tackle the great challenge ofprotecting our natural green environment from lifestyleinduced pollution.
For the future, we have our sights set on a progressively global
expansion, and aim to be the corporation for safety andsecurity.
Under the slogan of Protecting Human Life and Mother Earth,
Morita Group continues to unflinchingly commit itself todeveloping and embracing new technologies to protect ourlives.

Masahiro Nakajima, Chairman & CEOKazumi Ogata, President

Overview of 83rd Term
Net sales

Operating income

Ordinary income

Net income attributable toowners of parent company

68,574 million yen

7,517 million yen

8,123 million yen

4,537 million yen

Year on year

Year on year

Year on year

Year on year

Down 4.7%

Down 8.8%

During this consolidated fiscal year under review, a gradual
recovery was seen in economic conditions in the Japanesee c o n o m y, i n c l u d i n g i m p r o v e m e n t s i n c o m p a n i e s’performance and in the employment environment as a resultof the economic and fiscal policies pursued by the Japanese
government and the Bank of Japan. In contrast, the outlook
for economic conditions remains unclear because of theslowdown in the global economy, including China, andinstability in the financial markets, which have seen a rapid
strengthening in the yen and a sharp drop in share prices
since the start of the year.
In this environment, Morita Group has sought to achievesustainable growth and pursued cost reductions in addition toactively promoting business expansion, and worked todevelop new products.

Down 3.0%

Down 3.7%

In order to accelerate the global development of the FireFighting Vehicle Business, on January 29, 2016 we acquired aFinnish company BRONTO SKYLIFT OY AB.
Under these circumstances, the Fire Fighting Vehicles Businesshas encountered a period of low demand in Japan. In thecurrent fiscal year net sales fell by 3,368 million yen year onyear to 68,574 million yen (down 4.7%), operating income fellby 722 million yen year on year to 7,517 million yen (down8.8%), and ordinary income fell by 252 million yen year on year
to 8,123 million yen (down 3.0%). Net income attributable toowners of parent company fell by 172 million yen year on year
to 4,537 million yen (down 3.7%), partly as a consequence of a
600 million yen loss on sales of stocks of subsidiaries andaffiliates, and a 572 million yen loss on valuation of investment
securities.

Morita NewsAcquired a Finnish company with the aim of promoting the globalization ofour business
On January 29, 2016, Morita Holdings acquired 100% shares ofBRONTO SKYLIFT OY AB (BRONTO), which is headquartered in theNorthern European city of Tampere, Finland. Morita Group has
made a start in further promoting the globalization of our business.
BRONTO has built a sales network covering more than 100
countries throughout Europe and the world, and expanded its
business as the global top brand in Combined Platform Ladders(CPL).
The CPL is a vehicle with a ladder attached beside the boom toallow fire-fighting and rescue from high elevations. Some models
even operate at heights of up to 112m.
Morita believes that integrating BRONTO into its group willcontribute to the group’s sustainable growth and corporate value

improvement through enhancing its
overseas fire fighting vehicles businessand obtaining BRONTO’s state-of-theart CPL technology.
Outline of BRONTO SKYLIFT OY AB
Founded1938

Location

Tampere City,
Republic of Finland

Number of
approximately 400
employees
Mainproducts

Combined Platform Ladders (CPL)
Aerial work platforms

Sales launched for “SPRINEX mini”, packaged automatic fire extinguishing system type II- Satisfies the obligation to install fire extinguishing equipment at small-scale welfare facilities under the amended Fire Services Act On April 1, 2016, Morita Miyata Corporation launched a build-toorder service for “SPRINEX mini”, packaged automatic fire
extinguishing system type II that can be installed as an alternative
to a sprinkler system at small-scale welfare facilities with total floor
space of less than 275 m2.
More than 60% of the casualties in building fires result from victims
failing to escape quickly enough. More than half of these victims
are elderly. The Fire Services Act was amended because of the large
number of fires with casualties occurring at social welfare facilities.
Irrespective of the scale of the facility, any facility with a significant
number of elderly or disabled residents who would not be able toevacuate without assistance must have a sprinkler system installed.
Even in existing buildings, it will be compulsory to install a systemby the end of March 2018.
Installation of “SPRINEX mini” has been approved as an alternative
to installing a sprinkler system at small-scale welfare facilities withtotal floor space of less than 275 m2. “SPRINEX mini” is an automatic
fire extinguishing system with a compact design modelled on“SPRINEX”, which already has a track record of introduction at
approximately 2,700 welfare facilities and hospitals over a period of
27 years.

Fire FightingVehicles Business

CPL(Combined Platform Ladder)Fire Protection Equipment &Systems Business[Features of “SPRINEX mini”]- ‌Rapidly detects and extinguishes fires (detects fires using two typesof sensor, and extinguishing fires at an early stage)- Extinguishing performance 4 times better than water- ‌Stands up to interruptions in the water or power supply and freezing(extinguishing fluid is stored inside the main unit, giving you peace ofmind even if the water supply is cut; the system uses lithium batteries,
meaning that fires can be extinguished even when there is a powercut)- ‌S pace-saving, simple installation, and simple maintenance andremoval (there is no need for complicated piping work)- There is less water damage after extinguishing a fire

“SPRINEX mini”

Full line-up developed for the Pack Master, Rotary extrusion garbage truck
Morita Econos Corporation recently carried out a complete renewal of its
compact wide model and medium-sized model Pack Master garbage trucks
and launched sales.
Pack Master is a rotary extrusion garbage trucks series that aims to makegarbage collection more efficient, as well as safer and easier.
The elegant shape of the new models has been designed in the pursuit ofpracticality and safety, which are the essence of workplace needs. A newstandard has been set for garbage trucks by using the concept of “beauty =strength, cleanliness and reliability” in order to create a functional elegance thatsweeps away the workmanlike image of existing garbage collection vehicles.
Also a new model of the Press Master press-type garbage truck has been
designed and sales are due to be launched this autumn.
We will continue to value to our customers’ opinions as we pursue
improvements in safety and convenience.
[Features of Pack Master]- The largest capacity in its class (box capacity)- ‌H igh-mounted rear panel (an arch-like design that draws attention to theenvironment)- ‌Slim-line body (improves drivability in cramped locations)- ‌I mproved loading function (20% improvement compared to previous compactwide model and 9% improvement compared to previous medium-sized model)

Environmental Conservation
Vehicles Business

Design Conscious × Garbage Truck- Creating a new standard for garbage collection trucks:
practicality & shape design -O

Financial Highlights (Consolidated)
Ordinary Income

Net Income Attributable toOwners of Parent Company

Unit: Millions of yen

Unit: Millions of yen

Unit: Millions of yen

67,14071,666

71,943

68,574

8,375
6,429

2013.32014.32015.32016.32013.3

4,709

4,537

2015.32016.3

8,123
3,527

6,983
2,867

2014.32015.32016.32013.32014.3Return on Equity

Shareholders’ Equity Ratio

Interest-Bearing Liabilities

Unit: %

Unit: %

Unit: Millions of yen

13,682

55.3
10.2

48.6

51.1

50.2

10,820
9,375

9.1

8.7

6,502

7.9

2013.32014.32015.32016.32013.32014.32015.32016.32013.32014.32015.32016.3

Performance by Segment
Fire Protection Equipment & Systems BusinessFire Fighting Vehicles Business

Net Sales

Net SalesYear on year

Year on year

19,940 million yen Up 8.2%

32,820 million yen Down 14.4%

IncomeIncome1,780 million yen

Year on year
Up 16.3%

Sales and income were bothup thanks to strong sales ofSPRINEX, packaged automatic
fire extinguishing system.

4,176 million yen

We possess a large market
share, but sales and income
both fell as a result of a periodof low demand in Japan.

29.1%
Net Sales
Composition

Environmental Conservation Vehicles Business
Net Sales

9,859 million yen
Income1,134 million yen

Year on year
Up 1.7%
Year on year
Up 45.8%

Sales and income bothincreased as a result of stabledemand and the promotion ofcost-cutting.

Year on year
Down 26.9%

14.4%

47.8%
Recycling Machines Business

8.7%

Net Sales

5,953 million yen
Income420 million yen

Year on year
Up 8.4%
Year on year
Up 86.8%

Sales and income both rose
thanks to strong productorders and sales.

peration Highlights

Net Sales

Company Profile and Stock Information
Major Group Companies
Company Name

MORITA HOLDINGS CORPORATION

Inauguration ofBusiness

April 23, 1907

Establishment

July 23, 1932

Capital

4,746 million yen

Osaka Head Office

3-6-1 Dosho-machi, Chuo-ku, Osaka-shi, OsakaTokyo Head Office

3-25-31 Nishishinbashi, Minato-ku, Tokyo

Type of BusinessControl/management of business activities ofgroup companies, and being entrusted withindirect management operations

1-5 Techno Park, Sanda-shi, Hyogo,669-1339, Japan

MORITA CORPORATION

Development, manufacturing and sales of laddertrucks, fire trucks and other types of fire trucks andspecialty vehicles

1-1-1 Shimomachiya, Chigasaki-shi,
Kanagawa, 253-8588, Japan

MORITA MIYATACORPORATION

Development, manufacturing and sales of fire
extinguishing-related equipment, mainly of fire
extinguishers, firefighting equipment and otherfire protection equipment

MORITA ENVIRONMENTAL
TECH CORPORATION

Executives
Chairman & CEO

Masahiro Nakajima

President

Kazumi Ogata

Director

Yukihiro Maehata

Director

Toru Matsuo

Director

Mitsuo Isoda

Full-Time Corporate Auditor

Eiji Asada

Full-Time Corporate Auditor

Atsushi Sasaki

Full-Time Corporate Auditor

Yusuke Takano

Auditor

Masaru Ota

Corporate Executive Officer

Hiroko Urano

Corporate Executive Officer

Naohisa Sakamoto

Corporate Executive Officer

Shinichi Kanaoka

Corporate Executive Officer

Shinya Murai

1530 Konoda-cho, Funabashi-shi, Chiba,274-0081, Japan
Design and construction of waste recycling
facilities and other waste disposal facilities.
Development, manufacturing and sales of large
hydraulic equipment

1-48 Jinmu-cho, Yao-shi, Osaka,
581-0067, Japan

MORITA ECONOSCORPORATION

Development, manufacturing and sales ofenvironmental conservation vehicles such as
sanitation vehicles and garbage trucks

32 Techno Park, Sanda-shi, Hyogo,669-1339, Japan
MORITA TECHNOSCORPORATION

Aftercare service and maintenance of fire trucks
and of equipment and materials for lifesaving.
Development, manufacturing and sales ofelectronic applied machinery and information
processing machinery

BRONTO SKYLIFT OY AB

Development, manufacturing and sales ofcombined platform ladders and mobile elevating
work platforms

Tampere City, Republic of Finland

Distribution of Shares by Type of Shareholder

Information about the StockBusiness Year

April 1st to March 31st

Annual General Meeting ofJune
Shareholders
Reference Dates

Annual General Meeting of Shareholders - March 31stYear-end Dividend - March 31st
Interim Dividend - September 30th
Other dates published in advance as necessary

Method ofPublic Notice

Posted on company website
http://www.morita119.com/kohkoku/index.html

Administrator of
the Shareholders List

Sumitomo Mitsui Trust Bank, Limited
1-4-1 Marunouchi, Chiyoda-ku, Tokyo

Place of Clerical Office forthe above

Stock Transfer Agency Department, Sumitomo Mitsui
Trust Bank, Limited
4-5-33 Kitahama, Chuo-ku, Osaka-shi, Osaka(Postal Address)

Stock Transfer Agency Department, Sumitomo Mitsui
Trust Bank, Limited
2-8-4 Izumi, Suginami-ku, Tokyo, 168-0063

As of March 31st, 2016
Securities companies 0.3%

Treasury shares 3.6%
Other Japanese
corporations
8.2%

TotalNon-Japanese
corporations
12.4%

46,918,542 shares

Individuals/others

Financial institutions42.2%

33.3%

Top 10 Shareholders

As of March 31st, 2016

Name

No. of shares (thousand)

The Dai-ichi Life Insurance Company, Limited

3,265
2,495

(Telephone Inquiries)+81-3-3323-8222

Morita Trading-Partner Shareholding Association(Internet Website URL)

http://www.smtb.jp/personal/agency/ index.html

Mizuho Bank, Ltd.

2,087

Stock Listing

Tokyo Stock Exchange

2,082

Number of shares per unit

100 shares

Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

2,048

Sumitomo Mitsui Banking Corporation

2,007

Japan Trustee Services Bank, Ltd. (Trust account)

1,759

AIR WATER INC.

1,730

NORTHERN TRUST CO. (AVFC) RE-HCROO

1,557

Morita Employees Shareholding Association910[Special Account]
For shareholders who did not use JASDEC (Japan Securities Depository Center, Inc.) before theshare certificates were computerized, an account (a special account) has been opened with
Sumitomo Mitsui Trust Bank, Limited, the administrator of the shareholders list. For details
regarding the special account, notification of address change, and so on, please contact thetelephone inquiry number listed above.
[Notification of Address Change and Inquiries]
For shareholders who have an account at a securities firm, please contact the firm where youraccount was established for notification of address change and so on.
For shareholders who do not have an account at a securities firm, please contact thetelephone inquiry number listed above.

Osaka Head Office
3-6-1 Dosho-machi, Chuo-ku,Osaka-shi, Osaka, 541-0045

Tel. +81-6-6208-1907
Tokyo Head Office
3-25-31 Nishishinbashi, Minato-ku, Tokyo, 105-0003

Tel. +81-3-5777-5777
http://www.morita119.com

Notes:

1. ‌Number of shares held is rounded down to the nearest thousand shares.
2. ‌The Company holds treasury shares numbering 1,678 thousand shares.